{"id":548,"date":"2026-08-03T18:50:27","date_gmt":"2026-08-03T18:50:27","guid":{"rendered":"https:\/\/baarda.ch\/?p=548"},"modified":"2026-08-03T18:53:44","modified_gmt":"2026-08-03T18:53:44","slug":"can-you-tell-me-about-the-company-abb-and-if-one-would-have-invested-in-it-5-years-ago-would-one-have-made-a-profit-right-now","status":"publish","type":"post","link":"https:\/\/baarda.ch\/?p=548","title":{"rendered":"Can you tell me about the company ABB, and if one would have invested in it 5 years ago, would one have made a profit right now?"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">About ABB Ltd<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Gemini: <strong>ABB<\/strong> (Asea Brown Boveri) is a Swiss-Swedish multinational technology leader headquartered in Zurich, Switzerland. Formed in 1988 through the merger of Sweden&#8217;s ASEA and Switzerland&#8217;s Brown, Boveri &amp; Cie, ABB operates in four core global business areas:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Electrification:<\/strong> Smart power distribution, EV charging infrastructure, solar inverters, and medium\/low-voltage power systems.<\/li>\n\n\n\n<li><strong>Motion:<\/strong> Motors, generators, and electric drives that power industrial processes and transportation efficiently.<\/li>\n\n\n\n<li><strong>Process Automation:<\/strong> Measurement, analytics, control systems, and digital solutions for heavy industries (marine, mining, energy, pharmaceuticals).<\/li>\n\n\n\n<li><strong>Robotics &amp; Discrete Automation:<\/strong> Industrial robots, autonomous mobile robots (AMRs), and machine automation solutions.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">5-Year Investment Return Analysis<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Yes, an investment in ABB five years ago would have yielded a major profit.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over the past five years, ABB\u2019s stock experienced significant growth driven by structural demand in grid modernization, industrial automation, energy efficiency, and data center infrastructure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Stock Performance Breakdown<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Metric<\/th><th>SIX Swiss Exchange (<code>ABBN<\/code>)<\/th><th>NYSE \/ US ADR (<code>ABBNY<\/code>)<\/th><\/tr><\/thead><tbody><tr><td><strong>Share Price (Aug 2021)<\/strong><\/td><td>~32.38 CHF<\/td><td>~$34.50 USD<\/td><\/tr><tr><td><strong>Share Price (Aug 2026)<\/strong><\/td><td>~80.08 CHF<\/td><td>~$103.30 USD<\/td><\/tr><tr><td><strong>Capital Growth<\/strong><\/td><td><strong>+147%<\/strong><\/td><td><strong>+199%<\/strong><\/td><\/tr><tr><td><strong>Total Return (incl. Dividends)<\/strong><\/td><td><strong>&gt;160%<\/strong><\/td><td><strong>&gt;215%<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">What Drove the Growth?<\/h3>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Portfolio Streamlining:<\/strong> Under CEO Bj\u00f6rn Rosengren and subsequent leadership, ABB shifted to a decentralized operating model (&#171;ABB Way&#187;), shedding lower-margin businesses (like Power Grids to Hitachi) to focus on high-margin automation and electrification.<\/li>\n\n\n\n<li><strong>Energy Transition Tailwinds:<\/strong> Surge in global demand for electric vehicle charging, renewable grid connections, and energy-efficient industrial motors.<\/li>\n\n\n\n<li><strong>Data Center &amp; Infrastructure Boom:<\/strong> Heavy adoption of ABB\u2019s power distribution equipment to support power-hungry data centers and AI computing infrastructure worldwide.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Question: What about Swisscom, also what one would have made the last 5 years<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">About Swisscom AG<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Swisscom<\/strong> is Switzerland&#8217;s leading telecommunications provider and a state-backed digital services giant. The Swiss Confederation holds a mandatory majority stake (51%) in the company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Key Operational Focus Areas<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Consumer Telecommunications:<\/strong> Market leader in Swiss mobile, fixed-line broadband, and TV\/entertainment services.<\/li>\n\n\n\n<li><strong>Enterprise &amp; IT Services:<\/strong> Cloud infrastructure, cybersecurity, enterprise networking, and digital transformation services for Swiss businesses and government agencies.<\/li>\n\n\n\n<li><strong>International Expansion:<\/strong> Swisscom owns <strong>Fastweb<\/strong> in Italy and acquired <strong>Vodafone Italia<\/strong> (a major \u20ac8 billion deal announced in 2024 to merge Fastweb with Vodafone&#8217;s Italian operations).<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">5-Year Investment Return Analysis<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Yes, an investment in Swisscom five years ago would have yielded a modest profit, largely driven by high dividend payouts rather than rapid capital growth.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike high-growth tech or industrial stocks, Swisscom is widely treated as a defensive, bond-like equity \u2014 offering stable income with low volatility.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Stock Performance Breakdown (August 2021 \u2013 August 2026)<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Metric<\/th><th>SIX Swiss Exchange (<code>SCMN<\/code>)<\/th><th>US ADR (<code>SCMWY<\/code>)<\/th><\/tr><\/thead><tbody><tr><td><strong>Share Price (Aug 2021)<\/strong><\/td><td>~CHF 544.00<\/td><td>~$60.00 USD<\/td><\/tr><tr><td><strong>Share Price (Aug 2026)<\/strong><\/td><td>~CHF 622.00<\/td><td>~$76.75 USD<\/td><\/tr><tr><td><strong>Capital Growth (Price Return)<\/strong><\/td><td><strong>+14.3%<\/strong><\/td><td><strong>+27.9%<\/strong><\/td><\/tr><tr><td><strong>Total Return (incl. Reinvested Dividends)<\/strong><\/td><td><strong>+39.3%<\/strong><\/td><td><strong>+52.0%<\/strong><\/td><\/tr><tr><td><strong>Annualized Total Return<\/strong><\/td><td><strong>~6.85% per year<\/strong><\/td><td><strong>~8.7% per year<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">What Drove These Returns?<\/h3>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>High Dividend Yield:<\/strong> Swisscom routinely pays a dividend yield between 4% and 5%. The bulk of a shareholder&#8217;s profit over any 5-year window comes from these steady payouts rather than dramatic stock price surges.<\/li>\n\n\n\n<li><strong>Defensive Market Position:<\/strong> High market share and a stable regulatory environment in Switzerland allow Swisscom to maintain strong pricing power and high margins.<\/li>\n\n\n\n<li><strong>Currency Impact for US\/International Investors:<\/strong> Because the Swiss Franc (CHF) appreciated relative to the US Dollar over this period, USD-denominated returns were higher than local CHF returns.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>About ABB Ltd Gemini: ABB (Asea Brown Boveri) is a Swiss-Swedish multinational technology leader headquartered in Zurich, Switzerland. Formed in 1988 through the merger of Sweden&#8217;s ASEA and Switzerland&#8217;s Brown, Boveri &amp; Cie, ABB operates in four core global business areas: 5-Year Investment Return Analysis Yes, an investment in ABB five years ago would have &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/baarda.ch\/?p=548\" class=\"more-link\"><span class=\"screen-reader-text\">&#171;Can you tell me about the company ABB, and if one would have invested in it 5 years ago, would one have made a profit right now?&#187;<\/span> weiterlesen<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-548","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts\/548","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=548"}],"version-history":[{"count":2,"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts\/548\/revisions"}],"predecessor-version":[{"id":550,"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts\/548\/revisions\/550"}],"wp:attachment":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}